Tito Lima Is The Executive VP of CNB Financial Corporation (NASDAQ:CCNE) And They Just Picked Up 380% More Shares
Whilst it may not be a huge deal, we thought it was good to see that the CNB Financial Corporation (NASDAQ:CCNE) Executive VP, Tito Lima, recently bought US$93k worth of stock, for US$16.20 per share. Even though that isn't a massive buy, it did increase their holding by 380%, which is arguably a good sign.
View our latest analysis for CNB Financial
The Last 12 Months Of Insider Transactions At CNB Financial
In the last twelve months, the biggest single purchase by an insider was when Independent Director Francis Straub bought US$101k worth of shares at a price of US$19.90 per share. That means that an insider was happy to buy shares at above the current price of US$16.53. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months CNB Financial insiders were buying shares, but not selling. They paid about US$17.38 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of CNB Financial
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that CNB Financial insiders own 4.5% of the company, worth about US$13m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About CNB Financial Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest CNB Financial insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 2 warning signs for CNB Financial (1 is a bit concerning!) and we strongly recommend you look at them before investing.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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